Chapter 7 Product-Selling Strategies That Add Value

Product Positioning F Involves those decisions and activities intended to create and maintain a certain concept of the firm’s product in the customer’s mind. F It means that the product’s name, reputation, and niche are well recognized.

Product Differentiation F Your ability to separate yourself and your product from that of your competitors on the basis of quality, price, convenience, economy or some other factor

Value Proposition F The set of benefits and values the company promises to deliver to customers to satisfy their needs

Cluster of Satisfactions Product F Better quality F Larger selection F New-product improvements

Cluster of Satisfactions Salesperson F More courteous and trustworthy F More knowledgeable F More understanding of customers F Provides service after the sale

Cluster of Satisfactions Company F Delivery and installation F Orientation and training F Quick response times F Credit options F Customer service

Product Life Cycle F Introduction F Growth F Maturity F Decline

Product Positioning Options F Selling new and emerging products –Develop new levels of expectations –Change habits –Establish new standards –Build desire for product –Focus on creating new markets F Selling mature and well-established products –Emphasize brand superiority –Emphasize company superiority –Point out unique features –Provide outstanding customer service –Focus on sustaining existing market share

Product Positioning Options (con’t) F Selling products with a price strategy –Transactional selling tactics that emphasize low price Quantity discount Seasonal discount Promotional allowance Trade or function discounts –Consequences of using low-price tactics –Influence of electronic commerce on pricing

Product Positioning Options (con’t) F Selling your product with a value-added strategy –Generic product is the basic, substantive product –Expected product is everything that represents the customer’s minimal expectations –Value-added product exists when salespeople offer customers more than they expect –Potential product refers to what may remain to be done, that is, what is possible